Market value is the price at which a buyer and seller are likely to agree to a sale under current market conditions. In the stock market, electronic trading platforms' reporting systems tabulate all of the bid and ask price data in the system at a given point in time and spit out a quotation, which is a given share's market value at that time.
1. Enter a company's name or ticker symbol in the "Search" box at the top of any Motley Fool webpage.
2. Click on the "Search" button. The website will direct you to the company's financial profile.
3. Look at the price in big, bold numbers right under the company's name on its profile. That is the current market value of one common share of that company's stock. You must get the market value of a single share from a financial information service, because calculating the value requires millions of data points only available to trading platform computers.
1. Go to the federal Security and Exchange Commission's online database. Search for the company's financial statements by entering its name or ticker symbol.
2. Find the most recent financial statements in the results that EDGAR gives you. Click on the first 10-K, which is the annual report, or 10-Q, which is a quarterly report, that you see in the search results.
3. Go to the income statement in the report and find "Weighted Average Common Shares Outstanding" at the end of the statement. You want the number listed underneath in the "Basic" entry, which is the number of common shares in circulation.
4. Multiply the current share price by the number of shares from the "Basic" line to get the company's current market capitalization. Market capitalization represents the current market value of the company.
- Stanford University; Market Cap; Michael Fan; 2006
- Stock Market Investors: Company Market Capitalization
- IRS.gov; Frequently Asked Questions about Estate Taxes; March 2011
- "Computer Weekly"; The Evolution of Stock Market Technology; Karl Flinders; November 2007
- Securities and Exchange Commission; Electronic Communication Networks; June 2007